Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 36a-757 of the general statutes is repealed and the following is substituted in lieu thereof:

No mortgage lender shall, in connection with any application for a mortgage loan in this state which is secured by mortgage on residential real estate located in this state, require any prospective mortgagor to obtain by purchase or otherwise a fire insurance policy, flood insurance policy, other extended coverage policy, or any combination thereof, in excess of the replacement value of the covered premises as a condition for the granting of such mortgage.